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INSTRUCTIONS, 
RULES, AND FORMS 



CONCERNING PATENTS, TRADE-MARKS, PRINTS, 
LABELS AND COPYRIGHTS 



ISSUED BY THE 

FEDERAL TRADE COMMISSION 

UNDER SECTION TEN OF THE "TRADING 
WITH THE ENEMY ACT " 







WASHINGTON 
GOVERNMENT PRINTING OFFICE 

191? 



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B# of D. 
PIC 3 19?? 



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INSTRUCTIONS, RULES, AND FORMS CONCERNING PATENTS, 
TRADE-MARKS, PRINTS, LABELS, AND COPYRIGHTS. 



The act of Congress approved October 6, 1917, known as the " Trad- 
ing with the enemy Act," contains the following provisions concern- 
ing patents, trade-marks, prints, labels, and copyrights : 

Sec. 10. That nothing contained in this act shall be held to make unlawful 
any of the following acts: 

(a) An enemy, or ally of enemy, may file and prosecute in the United States 
an application for letters patent, or for registration of trade-mark, print, label, 
or copyright, and may pay any fees therefor in accordance with and as required 
by the provisions of existing law and fees for attorneys or agents for filing and 
prosecuting such applications. Any such enemy, or ally of enemy, who is un- 
able during war, or within six months thereafter, on account of conditions aris- 
ing out of war, to file any such application, or to pay any official fee, or to take 
any action required by law within the period prescribed by law, may be granted 
an extension of nine months beyond the expiration of said period, provided the 
nation of which the said applicant is a citizen, subject, or corporation shall 
extend substantially similar privileges to citizens and corporations of the United 
States. 

( & ) Any citizen of the United States, or any corporation organized within the 
United States, may, when duly authorized by the President, pay to an enemy or 
ally of enemy any tax, annuity, or fee which may be required by the laws of 
such enemy or ally of enemy nation in relation to patents and trade-marks, 
prints, labels, and copyrights ; and any such citizen or corporation may file and 
prosecute an application for letters patent or for registration of trade-mark, 
print, label, or copyright in the country of an enemy, or of an ally of enemy, 
after first submitting such application to the President and receiving license 
so to file and prosecute, and to pay the fees required by law and customary 
agents' fees, the maximum amount of which in each case shall be subject to 
the control of the President. 

(c) Any citizen of the United States or any corporation organized within the 
United States desiring to manufacture, or cause to be manufactured, a machine, 
manufacture, composition of matter, or design, or to carry on, or to use any 
trade-mark, print, label or cause to be carried on, a process under any patent 
or copyrighted matter owned or controlled by an enemy or ally of enemy at any 
time during the existence of a state of war may apply to the President for a 
license; and the President is hereby authorized to grant such a license, non- 
exclusive or exclusive as he shall deem best, provided he shall be of the opinion 
that such grant is for the public welfare, and that the applicant is able and 
intends in good faith to manufacture, or cause to be manufactured, the machine, 
manufacture, composition of matter, or design, or to carry on, or cause to be 
carried on, the process or to use the trade-mark, print, label or copyrighted 
matter. The President may prescribe the conditions of this license, including 
the fixing of prices of articles and products necessary to the health of the mili- 
tary and naval forces of the United States or the successful prosecution of the 
war, and the rules and regulations under which such license may be granted 
and the fee which shall be charged therefor, not exceeding $100, and not exceed- 
ing one per centum of the fund deposited as hereinafter provided. Such license 
shall be a complete defense to any suit at law or in equity instituted by the 
enemy or ally of enemy owners of the letters patent, trade-mark, print, label 
or copyright, or otherwise, against the licensee for infringement or for damages, 
royalty, or other money award on account of anything done by the licensee 
under such license, except as provided in subsection (/) hereof. 

(3) 

20064—17 



(d) The licensee shall file with the President a full statement of the extent 
of the use and enjoyment of the license, and of the prices received in such form 
and at such stated periods (at least annually) as the President may prescribe; 
and the licensee shall pay at such times as may be required to the alien prop- 
erty custodian not to exceed five per centum of the gross sums received by the 
licensee from the sale of said inventions or use of the trade-mark, print, label 
or copyrighted matter or, if the President shall so order, five per centum of the 
value of the use of such inventions, trade-marks, prints, labels or copyrighted 
matter to the licensee as established by the President ; and sums so paid shall 
be deposited by said alien property custodian forthwith in the Treasury of the 
United States as a trust fund for the said licensee and for the owner of the said 
patent, trade-mark, print, label or copyright registration as hereinafter pro- 
vided, to be paid from the Treasury upon order of the court, as provided in sub- 
division (/) of this section, or upon the direction of the alien property cus- 
todian. 

(e) Unless surrendered or terminated as provided in this act, any license 
granted hereunder shall continue during the term fixed in the license or in the 
absence of any such limitation during the term of the patent, trade-mark, print, 
label, or copyright registration under which it is granted. Upon violation by 
the licensee of any of the provisions of this act, or of the conditions of the 
license, the President may, after due notice and hearing, cancel any license 
granted by him. 

(/) The owner of any patent, trade-mark, print, label, or copyright under 
which a license is granted hereunder may, after the end of the war and until 
the expiration of one year thereafter, file a bill in equity against the licensee in 
the district court of the United States for the district in which the said licensee 
resides, or. if a corporation, in which it has its principal place of business (to 
which suit the Treasurer of the United States shall be made a party), for 
recovery from the said licensee for all use and enjoyment of the said patented 
invention, trade-mark, print, label, or copyrighted matter : Provided, however, 
That whenever suit is brought, as above, notice shall be filed with the alien 
property custodian within thirty days after date of entry of suit: Provided 
further. That the licensee may make any and all defenses which would be 
available were no license granted. The court on due proceedings had may 
adjudge and decree to the said owner payment of a reasonable royalty. The 
amount of said judgment and decree, when final, shall be paid on order of the 
court to the owner of the patent from the fund deposited by the licensee, so far 
as such deposit will satisfy said judgment and decree ; and trie said payment 
shall be in full or partial satisfaction of said judgment and decree, as the 
facts may appear ; and if, after payment of all such judgments and decrees, 
there shall remain any balance of said deposit, such balance shall be repaid to 
the licensee on order of the alien property custodian. If no suit is brought 
within one year after the end of the war, or no notice is filed as above re- 
quired, then the licensee shall not be liable to make any further deposits, and 
all funds deposited by him shall be repaid to him on order of the alien prop- 
erty custodian. Upon entry of suit and notice filed as above required, or upon 
repayment of funds as above provided, the liability of the licensee to make 
further reports to the President shall cease. 

If suit is brought as above provided, the court may, at any time, terminate 
the license, and may, in such event, issue an injunction to restrain the licensee 
from infringement thereafter, or the court, in case the licensee, prior to suit, 
shall have made investment of capital based on possession of the license, may 
continue the license for such period and upon such terms and with such royal- 
ties as it shall find to be just and reasonable. 

(g) Any enemy, or ally of enemy, may institute and prosecute suits in equity 
against any person other than a licensee under this act to enjoin infringement 
of letters patent, trade-mark, print, label, and copyrights in the United States 
owned or controlled by said enemy or ally of enemy in the same manner and 
to the extent that he would be entitled so to do if the United States was not at 
war: Provided, That no final judgment or decree shall be entered in favor of 
such enemy or ally of enemy by any court except after thirty days' notice to 
the alien property custodian. Such notice shall be in writing and shall be 
served in the same manner as civil process of Federal courts. 

(h) All powers of attorney heretofore or hereafter granted by an enemy or- 
ally of enemy to any person within the United States, in so far as they may 



be requisite to the performance of acts authorized in subsections (a) and(g) 
of this section, shall be valid. 

(i) Whenever the publication of an invention by the granting of a patent 
may, in the opinion of the President, be detrimental to the public safety or 
defense, or may assist the enemy or endanger the successful prosecution of the 
war, he may order that the invention be kept secret and withhold the grant of a 
patent until the end of the war : Provided, That the invention disclosed in the 
application for said patent may be held abandoned upon it being established 
before or by the Commissioner of Patents that, in violation of said order, said 
invention has been published or that an application for a patent therefor has 
been filed in any other country, by the inventor or his assigns or legal repre- 
sentatives, without the consent or approval of the commissioner or under a 
license of the President. 

When an applicant whose patent is withheld as herein provided, and who 
faithfully obeys the order of the President above referred to shall tender his 
invention to the Government of the United States for its use, he shall, if he 
ultimately receives a patent, have the right to sue for compensation in the Court 
of Claims, such right to compensation to begin from the date of the use of the 
invention by the Government. 

Executive Order Vesting Power and Authority in Designated Officers and 
Making Rules and Regulations Under Trading- with-the-Enemy Act and 
Title VII of the Act Approved June 15, 1917. ( Oct. 12, 1917. ) 



federal trade commission. 

XVII. I further hereby vest in the Federal Trade Commission the power and 
authority to issue licenses under such terms and conditions as are not inconsist- 
ent with law or to withhold or refuse the same, to any citizen of the United 
States or any corporation organized within the United States to file and prose- 
cute applications in the country of an enemy or ally of enemy for letters patent 
or for registration of trade-mark, print, label, or copyright, and to pay the fees 
required by law and the customary agents' fees, the maximum amount of which 
in each case shall be subject to the control of such commission ; or to pay to any 
enemy or ally of enemy any tax, annuity, or fee which may be required by the 
laws of such enemy or ally of enemy nation in relation to patents, trade-marks, 
prints, labels, and copyrights. 

XVIII. I hereby vest in the Federal Trade Commission the power and au- 
thority to issue, pursuant to the provisions of section 10 (c) of the trading- 
with-the-enemy act, upon such terms and conditions as are not inconsistent with 
law, or to withhold or refuse a license to any citizen of the United States, or any 
corporation organized within the United States, to manufacture or cause to be 
manufactured a machine, manufacture, composition of matter, or design, or to 
carry on or cause to be carried on a process under any patent, or to use any 
trade-mark, print, label, or copyrighted matter owned or controlled by an 
enemy or ally of enemy, at any time during the present war ; and also to fix the 
prices of articles and products manufactured under such licenses necessary to 
the health of the military and the naval forces of the United States, or the 
successful prosecution of the war ; and to prescribe the fee which may be 
charged for such license, not exceeding $100 and not exceeding 1 per cent of the 
fund deposited by the licensee with the alien property custodian as provided 
by law. 

XIX. I hereby further vest in the said Federal Trade Commission the execu- 
tive administration of the provisions of section 10 (d) of the trading-with-the- 
enemy act, the power and authority to prescribe the form of, and time and 
manner of filing statements of the extent of the use and enjoyment of the 
license and of .the prices received and the times at which the licensee shall make 
payments to the alien property custodian, and the amounts of said payments, 
in accordance with the trading-with-the-enemy act. 

XX. I further hereby vest in the Federal Trade Commission the power and 
authority, whenever in its opinion the publication of an invention or the grant- 
ing of a patent may be detrimental to the public safety or defense, or may assist 
the enemy, or endanger the successful prosecution of the war, to order that the 



6 

invention be kept secret and the grant of letters patent withheld until the end 
of the Mar. 

XXI. The said Federal Trade Commission is hereby authorized to take all 
such measures as may be necessary or expedient to administer the powers 
hereby conferred. 

Payment of Patent, Trade- mark, and Copyright Taxes, Annui- 
ties and Fees in Enemy Countries and Filing and Prosecuting 
Applications Therein. 

Applicants for licenses must submit, in the English language, 1 to 
the Federal Trade Commission every application for letters patent, 
for the registration of trade-mark, print, label, or copyright which 
they desire to file in the country of an enemy or ally of enemy, every 
amendment, power of attorney, letter, or communication with re- 
spect thereto, and every drawing, electro, or other cut or reproduc- 
tion, specimen, facsimile, copy, or model, together with any check, 
draft, or other form of remittance for any tax, annuity, or fee, and 
agents' or attorneys' fees or compensation proposed to be sent, 
directly or indirectly, to any country of an enemy or ally of an 
enemy. In the case of chemical compounds or compositions of mat- 
ter there shall also be submitted samples of the article or preparation, 
or samples of the ingredients, if any; and in the case of coloring 
matters prepared from tar, a sample of the dyeing of wool, silk, or 
cotton, and any statement, description, and directions in respect 
thereto, if and as required by the foreign law, and any and all other 
samples, specimens, descriptions, statements, and directions proposed 
to be forwarded. 

There shall also be submitted at the same time, the envelope or 
other cover, stamped with sufficient postage and addressed, in which 
the matters herein mentioned are proposed to be forwarded. 

The intention is to have submitted to the Federal Trade Com- 
mission every inclosure and cover concerning every application for 
patent, trade-mark, print, label, or copyright, and their prosecution, 
desired to be forwarded, directly or indirectly, to an enemy country 
or to the country of an ally of an enemy. 

Everything (except remittance) is required to be furnished to the 
Federal Trade Commission in duplicate. One copy will be retained 
in the files of the commission. 

Each application for a license shall be accompanied by the affidavit 
of the applicant, his solicitor, or patent agent that nothing contained 
in any of the material submitted will give any information detri- 
mental to the public safety or defense or which may assist the 
enemy or endanger the successful prosecution of the war, and that 
the amount of money, if any, proposed to be transmitted is the 
correct tax, annuity, or fee and the customary agents' fee, and such 
affidavit shall also state what portion of the remittance is to be applied 
to taxes, fees, or annuities and what portion to agents' fees. 

It is unlawful and punishable by fine and imprisonment for anyone 
without first obtaining a license to forward applications for letters 
patent or for the registration of trade-mark, print, label, or copy- 

1 In exceptional cases and for good cause shown, applications and other communica- 
tions may be submitted in German, but only when accompanied by a verified English 
translation. 



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right in an enemy or ally of enemy nation indirectly through corre- 
spondence or agents in any foreign country. 1 

Applications for Licenses Under Patents and Copyrights Owned 
or Controlled by an Enemy or Ally of an Enemy. 

Applicants for a license under patents or copyrights owned or con- 
trolled by an enemy or an ally of an enemy are required to file a 
verified statement with the Federal Trade Commission in concise and 
nontechnical language, covering the following points, stating in each 
instance the facts upon which any conclusion may be based : 

(a) If an individual, that he is a citizen of the United States. If 
a corporation, that it is organized within the United States. 

(b) That the patent or copyright desired to be licensed is owned 
or controlled by an enemy or an ally of an enemy. (For definitions 
of " enemy " and " ally of an enemy " see footnote. ) 

Footnote. — Definitions of k ' Enemy " and "Ally of Enemy." 

Sec. 2. That the word " enemy," as used herein, shall be deemed to mean, for 
the purpose of such trading and of this act — 

(a) Any individual, partnership, or other body of individuals, of any nation- 
ality, resident within the territory (including that occupied by the military and 
naval forces) of any nation with which the United States is at war, or resident 
outside the United States and doing business within such territory, and any 
corporation incorporated within such territory of any nation with which the 
United States is at war or incorporated within any country other than the 
United States and doing business within such territory. 

(&) The government of any nation with which the United States is at war, 
or any political or municipal subdivision thereof, or any officer, official, agent, 
or agency thereof. 

(c) Such other individuals, or body or class of individuals, as may be natives, 
citizens, or subjects of any nation with which the United States is at war, other 
than citizens of the United States, wherever resident or wherever doing busi- 
ness, as the President, if he shall find the safety of the United States or the 
successful prosecution of the war shall so require, may, by proclamation, include 
within the term " enemy." 

The words " ally of enemy," as used herein, shall be deemed to mean — 

(a) Any individual, partnership, or other body of individuals, of any nation- 
ality, resident within the territory (including that occupied by the military and 
naval forces) of any nation which is an ally of a nation with which the United 
States is at war, or resident outside the United States and doing business within 
such territory, and any corporation incorporated within such territory of such 
ally nation, or incorporated within any country other than the United States 
and doing business within such territory. 

(&) The government of any nation which is an ally of a nation with which 
the United States is at war, or any political or municipal subdivision of such 
ally nation, or any officer, official, agent, or agency thereof. 

(c) Such other individuals, or body or class of individuals as may be natives, 
citizens, or subjects of any nation which is an ally of a nation with which the 

Attention is called to the following provisions of sec, 3 of the trading-with-the-enemy 
act : 

" * * * and it shall be unlawful * * * for any person to send, take, or trans- 
mit out of the United States any letter or other writing, book, map, plan, or other paper, 
picture, or any telegram, cablegram, or wireless message or any other form of communica- 
tion intended for or to be delivered, directly or indirectly, to an enemy or ally of an 
enemy : Provided, however, That any person may send, take or transmit out of the United 
States anything herein forbidden if he shall first submit the same to the President or to 
such officer as the President may direct and shall pbtain the license or consent of the 
President, and under such rules and regulations and with such exemptions as shall be 
prescribed by the President." 

Violation of any of the provisions of the act or of any license, rule, or regulation issued 
thereunder is punishable by a fine of not ny>re than $10,000 or imprisonment for not more 
than 10 years or both. 



8 

United States is at war, other than citizens of the United States, wherever resi- 
dent or wherever doing business, as the President, if he shall find the safety of 
the United States or the successful prosecution of the war shall so require, 
may, by proclamation, include within the term " ally of enemy." 

If it is claimed that the patent or copyright is controlled by an 
enemy or ally of an enemy, the nature and origin of the control should 
be plainly stated, whether by contract, agency, stock ownership, or 
otherwise. 

(c) There shall be attached to the application a Patent Office copy 
of the patent and a certified abstract of title to it, or a specimen of 
the copyrighted article and a certified copy of the copyright en- 
tries and, in the case of a patent, of a certified copy of the petition 
and all powers of attorney in the file of the application. 

(d) That licensing the applicant is for the public welfare. Spe- 
cifically, that there is a demand for the patented or copyrighted 
article or the product of the patented process which is not being met. 

(e) That the applicant is able to make or cause to be made the 
patented or copyrighted article or exercise the patented process. 
Specifically, that the applicant is technically and otherwise equipped 
to undertake or procure the manufacture or operate the process and 
is in fact able to do so. 

(/) That the applicant intends to do so in good faith. 

(g) The application must be verified by the person applying for 
the license, and in the case of a corporation by an officer thereof 
acquainted with the facts recited. 

Each application shall be accompanied with a remittance of one 
hundred dollars. 

A suggested form of application is appended. 

A separate application is required for each patent or copyright. 

The application should be prepared in duplicate and, for conven- 
ience in filing, on good unglazed paper 8 inches by 10J inches, di- 
rected to the Federal Trade Commission, Patent, Trade-mark, and 
Copyright Division, and may be transmitted by mail or delivered 
personally. Personal attendance at the outset is not necessary. If 
any hearings are desired, notice of them will be given. 

In every case where practicable notice of applications for license 
will be given to the attorney of the patentee or copyright proprietor 
whose name appears in the file of the application in the Patent Office 
or the office of the Register of Copyrights. 

The burden of establishing affirmatively the facts upon which, 
under the terms of the act, licenses may be granted is placed upon 
the applicant for license. 

THE TERMS OF THE LICENSE. 

The act provides and the Executive order vests in the Federal Trade 
Commission the duty of prescribing the conditions of the license. 

The form of licenses proposed to be issued is appended. 

Only nonexclusive licenses w<ill be issued unless the public interest 
shall otherwise require. 

DURATION OF LICENSE. 

The act provides (sec. 10 (e) ) that licenses shall continue during the 
terms fixed in the license, or, in the absence of any such limitation. 



9 

during the term of the patent * * * or copyright registration 
under which it is granted, and that upon violation by the licensee of 
any of the provisions of the act, or of the conditions of the license, 
after due notice and hearing, the license may be canceled. 

LICENSES UNDER TRADE-MARKS, PRINTS, AND LABELS OWNED OR CON- 
TROLLED BY AN ENEMY OR ALLY OF AN ENEMY. 

Licenses for the use of trade-marks, prints, and labels will be 
granted only under exceptional circumstances. Applications for 
licenses under the following conditions will be entertained: 

(1) Where the alleged trade-mark is the name of a patented or 
copyrighted article and a license is granted under the patent or copy- 
right. 

(2) Where the alleged trade-mark is the name of an article manu- 
factured under an expired patent or copyright. 

THE LICENSE FEE. 

The act provides that the license fee shall not exceed $100, and not 
exceeding 1 per cent of the sum deposited with the alien property 
custodian. This fund is an amount not to exceed (a) 5 per cent of 
the gross sums received by the licensee from the sale of the licensed 
subject matter, or (h) 5 per cent of the value of the use of the licensed 
subject matter as established by the Federal Trade Commission. 

ACCOUNTING AND PAYMENT TO THE ALIEN PROPERTY CUSTODIAN. 

The licensee shall file with the Federal Trade Commission, semi- 
annually on January 1 and July 1 of each year and oftener if re- 
quired, a full statement of the extent of the use and enjoyment of the 
license, and of the prices received from the sale or use of the subject 
matter of it, and within 30 days thereafter the licensee shall pay to 
the alien property custodian not to exceed 5 per cent of the gross 
sums received from the sale of the licensed subject matter, or if the 
Federal Trade Commission so order not to exceed 5 per cent of the 
value of the use of the licensed subject matter as established by the 
Federal Trade Commission. 

SUGGESTED FORM OF APPLICATION TO THE FEDERAL TRADE COMMISSION FOR A 

LICENSE. 

TRADING WITH THE ENEMY ACT. 

To the Federal Trade Commission : 

Application of for a license under patent to , date , 

No. . 

(If under copyright, state title of work, name of copyright proprietor, and 
date of copyright registration.) 

The undersigned, for the purpose of securing a license, represents to the 
Federal Trade Commission as follows : 

(a) The undersigned is a citizen of the United States, residing at 

Street, in the city of , State of . United States of America. (If a 

corporation, state under the laws of what State it is organized ; the location of 
its corporate offices, its business offices, and plants or factories.) 



10 

(b) The undersigned is desirous of being licensed under the patent (or 

copyright) above named, which is owned or controlled by , a 

citizen or subject of . ( State the enemy country or the ally of the 

enemy of which the patentee or copyright proprietor is a citizen or subject, 
or if a corporation where it is incorporated, and if the patent or copyright is 
not owned but is claimed to be controlled state fully the facts which establish 
the nature and origin of the enemy or ally of enemy control, whether it is by 
means of an agency, by contract, by stock ownership in corporations, or other- 
wise. ) 

(c) Attached hereto is a Patent Office copy of the letters patent and a certi- 
fied abstract of its title from the Patent Office and a certified copy of the peti- 
tion and all powers of attorney in the file of the application (or, in the case of 
a copyright, a specimen of the copyrighted work, and a certified copy of the 
copyright entries from the office of the Register of Copyrights). 

(d) It. is for the public welfare that the license applied for be granted be- 
cause^ — (Here state, briefly but completely and in nontechnical language the 
reason why it is for the public benefit that the license be granted and specifically 
the demand for the article prior to the war, the demand for the article at the 
present time whether or not this demand is being met or can be met, prices 
obtained prior to the war and prices at the present time.) 

(e) Applicant is able to make or cause to be made the patented or copy- 
righted article because — (Here state specifically the applicant's experience in the 
production of articles of the kind covered by the patent or copyright, his techni- 
cal equipment for manufacturing and selling such articles and his ability to do 
so, the estimated cost of manufacture and price proposed to be charged if the 
license is granted.) 

(If the applicant does not intend to manufacture but to procure the manu- 
facture of the article, state specifically what arrangements have been made or 
proposed to this end and their terms and conditions. State the name and ad- 
dress of the manufacturer proposed to be employed and his technical equipment, 
etc., and attach copies of any contracts or proposals.) 

(/) The license desired is exclusive or nonexclusive for the following rea- 
sons: (Here state reasons why, in the opinion of the applicant, the license 
should be exclusive or nonexclusive.) 

(g) The license is desired — 

(1) For the term of the patent or copyright, (2) the duration of the war, or 
(3) any other period, stating reasons in each case. 

(h) The application is also to contain the following: "The undersigned in- 
tends in good faith to manufacture or cause to be manufactured the article 
licensed and understands that the license, if granted, may not be assigned and 
may be canceled by the Federal Trade Commission, after due notice of hearing, 
upon violation by the undersigned of any of the provisions of the ' Trading with 
the enemy Act ' or of any of the conditions of the license." 

(Signed) , 

Applicant. 

oath for an individual. 

State of , 

County of , ss: 

, being duly sworn, deposes and 

states that he is the same person whose name is signed to the foregoing 
statement ; that he has read this statement and knows and understands ij;s con- 
tents ; and that it is true. 



Subscribed and sworn to before me this day of 

191__. 



Notary Public. 

OATH FOR A CORPORATION. 



State of , 

County of , ss: 

, being duly sworn, deposes and 

states that he is the of 

, the corporation whose name is signed to the foregoing 

statement ; that he is duly authorized to swear to such statement on behalf of 



11 

such corporation ; that he has read this statement and knows and understands 
its contents, and that it is true. 



Subscribed and sworn to before me this day of 

191__. 



Notary Public. 
FORM OF LICENSE UNDER PATENT. 



Patent licenses issued by the Federal Trade Commission under the 
provisions of the " Trading with the enemy Act " will be in substan- 
tially the following form: 

Patent No. , dated , to 

, for 

The Federal Trade Commission, under the authority of and in conformity 
with the " Trading with the enemy Act," and of the Executive order of October 

12, 1917, hereby licenses to make, 

use. and vend within the United States the invention described and claimed 

in United States letters patent to 

No. , dated (copy annexed hereto) 

for the period of unless sooner terminated. 

The licensee during the continuance of this license shall pay to the alien 
property custodian, semiannually, within 30 days after the 1st day of January 
and the 1st day of July, respectively, of each year, a royalty at the rate of 

per cent of the gross sums received by the licensee from the 

sale of the invention so herein licensed (or per cent of the value of 

the use thereof to the licensee as .established by the Federal Trade Com- 
mission). 

The licensee shall, during the continuance of this license, keep proper ac- 
counts and separate books containing full particulars of : 

(a) All articles made or caused to be made by the licensee under the said 
letters patent and of the price or prices charged therefor ; 

( b ) All items of cost incurred in the use of such invention and the manufacture 
and sale of articles made thereunder ; and 

(c) All other matters and things which in the opinion of the Federal Trade 
Commission may be material for the purpose of showing the amounts from time 
to time payable by the licensee concerning such royalty and what is a fair and 
reasonable price to the public for such article. 

The licensee shall, within 10 days after each of the semiannual days aforesaid, 
deliver a sworn statement to the Federal Trade Commission in writing showing 
the aforesaid particulars. 

The licensee shall, during the continuance of this license, give all such infor- 
mation as the Federal Trade Commission may consider to be material for the 
purpose of ascertaining the amount of royalty payable by the licensee under this 
license, the cost of the use of such invention, the cost of producing and the price or 
prices charged by the licensee for the said article, and for that purpose shall, if 
requested by the Federal Trade Commission, permit such person or persons as 
shall be authorized in that behalf by the Federal Trade Commission at any time 
or times to enter upon and inspect any factory or place of business of the licensee 
in which the use of the said invention or^he manufacture of the said article 
shall be carried on and all books, papers, and documents of such licensee re- 
lating to such use, manufacture, and sale. 

If any payment under this license shall not be made within one month aft^r 
the same shall have become due under the provisions herein contained (whether 
demand therefor shall have been made or not), or if the licensee shall or shall 
attempt to assign or part with the benefit of or grant any sublicense under 
this license, or shall make default in the performance or observance of any 
obligation on his part herein contained, or shall have violated any of the condi- 
tions of this license or any of the provisions of the statute under which it is 
granted, and if, after 10 days' notice in writing, shall have failed to comply 
with the aforesaid, then the Federal Trade Commission may, by notice in writ- 
ing, and after a hearing, cancel and terminate this license as from the date of 
such notice, but without prejudice to and so as not in any manner to affect any 



12 

liability hereunder on the part of the licensee which may then be subsisting or 
have accrued. 

If in the opinion of the Federal Trade Commission the licensee has failed to 
use this license so as to satisfy the reasonable requirement of the public with 
regard to the subject matter thereof ; or 

If in the opinion of the Federal Trade Commission the licensee has failed to 
supply to the public the articles made under this license at reasonable prices ; or 

If in the opinion of the Federal Trade Commission the licensee has charged 
unreasonable or excessive prices for articles made under this license : or 

If in the opinion of the Federal Trade" Commission the articles made under 
this license are of unsatisfactory quality (and the licensee shall furnish to the 
Federal Trade Commission in the manner prescribed by it and when and as 
often as required, samples and specimens for inspection, analysis, and test) ; or 

Circumstances have arisen which, in the opinion of the Federal Trade Com- 
mission, make it just and equitable that this license be canceled in whole or 
in part ; 

The Federal Trade Commission may, in its discretion, give notice in writing 
to the licensee to terminate and cancel this license in whole or in part, and, if 
canceled and terminated, the same shall be without prejudice to and so as not 
in any manner to affect any liability hereunder on the part of the licensee 
which may then be subsisting or have accrued. 

Any sums which may at any time be payable by the licensee under the 
provisions of this license shall be a debt due from the licensee to the people of 
the United States, and shall be recovered in an appropriate action in the name 
of the people of the United States against the licensee. 

Dated. , 191__. 

Accepted and agreed to. 



Licensee. 

A copy of the patent is to be attached. 

If the licensee is not to be the actual manufacturer, the licensee 
will be held accountable to the Federal Trade Commission for the 
observance of the terms of his license by the actual manufacturer of 
the article, and the license will contain the following addendum, 
naming the actual manufacturer who shall sign : 

, the manufacturer for 

, the licensee 

of the article herein licensed, separately agrees to keep separate books contain- 
ing full particulars of all articles manufactured, and the cost thereof, sold to 

, the licensee, and the price or prices 

charged therefor, and his books and plant shall be open to inspection in the 
same manner as provided for the licensee. The licensee and the undersigned, 
during the continuance of the license, shall furnish or procure to be furnished 
all such information as the Federal Trade Commission may consider to be ma- 
terial for the purpose of ascertaining the amount of royalty payable by the 
licensee, the cost of producing or procuring the patented article, the price or 
prices charged for said article, and shall permit or procure permission to be 
given to such person or persons as shall be authorized in that behalf by the 
Federal Trade Commission at any time or times to enter upon and inspect 
any factory or place of business in which the manufacture of the patented 
article shall be carried on by the undersigned for the licensee, and all books, 
papers, and documents relating to such manufacture and sale. 

The undersigned, manufacturer, is not authorized to make, use, or vend the 

invention of the patent except for , 

the licensee, and not further or otherwise, and the undersigned undertakes to 

observe and perform the terms and conditions of the license to 

, to which this is attached. 

Dated. , 191__. 

Accepted and agreed to. 



Manufacturer. 



13 

FORM OF LICENSE UNDER COPYRIGHT. 

Copyright licenses issued by the Federal Trade Commission under 
the provisions of the " Trading with the enemy Act " will be in sub- 
stantially the following form : 

Copyright No. , dated to for the (book, etc., as the case 

may be; see copyright act of March 4, 1909, sec. 5, for classification) entitled 
(insert title of work). 

The Federal .Trade Commission, under the authority of and in conformity 
with the " Trading with the enemy Act " and of the Executive order of October 

12, 1917, hereby licenses to exercise within the United States all the 

rights created by the copyright laws of the United States of America, being 
the act of March 4, 1909, as amended, with respect to the subject matter of 

copyright to , No. , dated for the (book, etc., as the case 

may be; see copyright act of March 4, 1909, sec. 5, for classification) entitled 
(insert title of work), a copy of which is annexed hereto, for the period of 
, unless sooner terminated. 

The licensee, during the continuance of this license, shall pay to the alien 
property custodian, semiannually, within 30 days after the 1st day of January, 
and the 1st day of July, respectively, of each year, a royalty at the rate of 

per cent of the gross sums received by the licensee from the sale of the 

copyright work so herein licensed (or per cent of the value of the use 

thereof to the license as established by the Federal Trade Commission). 

The licensee shall, during the continuance of this license, keep proper ac- 
counts and separate books containing full particulars of — 

(a) All copies of said copyright work made or caused to be made by the 
licensee under the said copyright and of the price or prices charged therefor : 

(&) All items of cost incurred in the use of said copyright work and in the 
manufacture and sale of such copyright work, and 

(c) All other matters and things which, in the opinion of the Federal Trade 
Commission, may be material for the purpose of showing the amounts from time 
to time payable by the licensee concerning such royalty, and what is a fair 
and reasonable price to the public for such copyright work. 

The licensee shall, within 10 days after each of the semiannual days afore- 
said, deliver a sworn statement to the Federal Trade Commission in writing 
showing the aforesaid particulars. 

The licensee shall during the continuance of this license give all such in- 
formation as the Federal Trade Commission may consider to be material for 
the purpose of ascertaining the amount of royalty payable by the licensee under 
this license, the cost of producing, and the price or prices charged by the 
licensee for the said copyright work, and for that purpose shall, if requested by 
the Federal Trade Commission, permit such person or persons as shall be 
authorized in that behalf by the Federal Trade Commission at any time or 
times to enter upon and inspect any factory or place of business of the licensee 
in which the use or manufacture of the said copyright work shall be carried 
on, and all books, papers, and documents of such licensee relating to such use, 
manufacture, and sale. 

If any payment under this license shall not be made within one month after 
the same shall have become due under the provisions herein contained (whether 
demand therefor shall have been made or not), or if the licensee shall or shall 
attempt to assign or part with the benefit of or grant any sublicense under this 
license, or shall make default in the performance or observance of any obliga- 
tion on his part herein contained, or shall have violated any of the conditions of 
this license or any of the provisions of the statute under which it is granted, 
and if after 10 days' notice, in writing, shall have failed to comply with the 
aforesaid, then the Federal Trade Commission may, by notice in writing, and 
after a hearing, cancel and terminate this license as from the date of such 
notice, but without prejudice to and so as not in any manner to affect any 
liability hereunder on the part of the licensee which may then be subsisting or 
have accrued. 

If in the opinion of the Federal Trade Commission the licensee has failed to 
use this license so as to satisfy the reasonable requirement of the public with 
regard to the copyright work ; or 



14 

If in the opinion of the Federal Trade Commission the licensee has failed to 
supply to the public the copyright work at reasonable prices ; or 

If in the opinion of the Federal Trade Commission the licensee has charged 
unreasonable or excessive prices for said copyright work ; or 

Circumstances have arisen which in the opinion of the Federal Trade Com- 
mission make it just and equitable that this license be canceled in whole or 
in part; 

The Federal Trade Commission may, in its discretion, give notice in writing 
to the licensee to terminate this license in whole or in part, and if canceled 
and terminated the same shall be without prejudice to and so as not in any 
manner to affect any liability hereunder on the part of the licensee which may 
then be subsisting or have accrued. 

Any sums which may at any time be payable by the licensee under the 
provisions of this license shall be a debt due from the licensee to the people of 
the United States and shall be recovered in an appropriate action in the 
name of the people of the United States against the licensee. 

Dated , 191__. 

Accepted and agreed to. 



Licensee. 

If the licensee is not to be the actual manufacturer or producer 
of the copyright work, the licensee will be held accountable to the 
Federal Trade Commission for the observance of the terms of his 
license by the actual manufacturer or producer of the article, and the 
license will contain the following addendum, naming the actual 
manufacturer or producer of the article, who shall sign : 

, the manufacturer for 

, the licensee of the copyright work herein 

licensed, separately agrees to keep separate books containing full particulars of 

all of such copyright works manufactured and the cost thereof, sold to 

. the licensee, and the price or prices charged 

therefor, and his books and plant shall be open to inspection in the same manner 
as provided for the licensee. The licensee and the undersigned, during the 
continuance of the license, shall furnish or procure to be furnished all such 
information as the Federal Trade Commission may consider to be material f or 
the purpose of ascertaining the amount of royalty payable by the licensee, the 
cost of producing or procuring the copyright work, the price or prices charged 
therefor, and shall permit or procure permission to be given to such person 
or persons as shall be authorized in that behalf by the Federal Trade Com- 
mission at any time or times to enter upon and inspect any factory or place of 
business in which the manufacture of the copyright work shall be carried on by 
the undersigned for the licensee, and all books, papers, and documents relating 
to such manufacture and sale. 

The undersigned, manufacturer, is not authorized to exercise any right con- 
ferred by the copyright statutes with respect to the copyright work here in- 
volved except for , the licensee, and 

not further or otherwise, and the undersigned undertakes to observe and per- 
form the terms and conditions of the license to - — * 

to which this is attached. 

Dated , 191— 

Accepted and agreed to. 



Manufacturer. 

A surety company bond may be required of the licensee, if, in the 
opinion of the Federal Trade Commission, it is necessary to safe- 
guard the public interest. 

o 



LIBRARY OF CONGRESS 



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LIBRARY OF CONGRESS 



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